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Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 8,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Cost Estimated Cost Pool Activity 1 Activity 2 Activity 3 Multiple Choice $10.59 $2.40 $20,000 37,000 91,200 $6.78 Product A Expected Activity Product B 400 1,000 1,600 The cost per unit of Product A under activity-based costing is closest to which of the following? (Round your final answer to 2 decimal places.) 500 200 3,600 Total 900 1,200 5,200
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